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Indonesia’s Jasa Marga Lists ‘Komodo Bonds’ on LSE

The issuance of Komodo Bonds, Indonesia first global Rupiah bonds on the London Stock Exchange, on Wednesday (13/12)

In a bid to find new sources of funding to finance infrastructure development and to accelerate national growth, the Indonesian Government through its state-owned toll road operator PT. Jasa Marga, on Wednesday (13/12) listed its first global Rupiah bonds on the London Stock Exchange (LSE) called Komodo Bonds

Responding to the issuance of the bonds, President Joko “Jokowi” Widodo said: “It (the issuance of the bond) will increase liquidities and also shows that foreign investors have trust and a high interest to invest in Indonesia,” the President said after attending the Organization for Islamic Conference (OIC) in Istanbul, Turkey on Wednesday (13/12).

President Jokowi also hopes that the issuance of the bonds can attract foreign investors to make investment in Indonesia so as to accelerate infrastructure development, provide more job opportunities in the country, and introduce Rupiah to foreign investors.

“And it is also expected to open up new access to funding sources to finance infrastructure development,” the President added.

The name ‘Komodo’ itself is derived from the name of a large species of lizard called Komodo Dragon that can be found in Indonesia’s East Nusa Tenggara province. The naming pattern follows several countries that name their bonds using local currencies with objects that are regarded as their symbols or identities such as ‘Dim Sum Bond’ owned by China and ‘Masala Bond’ owned by India.

Investors’ interest in the bond is very high as the bonds were four times oversubscribed.

The launching of the Komodo Bond was attended by Minister of State-owned Enterprises Rini Soemarno, Chairman of the Financial Service Authority (OJK) Wimboh Santoso, President Director of state-owned toll operator Jasa Marga Desi Arryani, President Director of state-owned lender Bank Mandiri Kartika Wiroatmodjo, President Director of state-owned lender BNI Achmad Baiquni and President Director of state-owned electricity company PT PLN Sofyan Basir. (BPMI/EN)(EP/YM/Naster)